Uptick Volume

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DEFINITION of 'Uptick Volume'

The volume of shares of a security that are traded when the price is increasing. Uptick volume is used in trading strategies based on trends, with the difference between uptick volume and downtick volume referred to as the money flow. Stocks with positive momentum will trade at an increasing uptick volume as current trading prices are above the average price.

INVESTOPEDIA EXPLAINS 'Uptick Volume'

Uptick volume can be used in momentum trading or to be analyzed as resistance bands. In a scenario in which ticks are increasing, investors may look at a security as having more buyer demand than the number of shares being sold. This is a bullish strategy that depends on the continuous rise in prices.

RELATED TERMS
  1. Uptick

    A transaction for a financial instrument that occurs at a higher ...
  2. Zero Uptick

    A transaction executed at the same price as the trade immediately ...
  3. Down Volume

    A stock volume that closes at a price lower than the previous ...
  4. Volume

    The number of shares or contracts traded in a security or an ...
  5. Net Volume

    A term in technical analysis that represents a security's uptick ...
  6. Up Volume

    A stock volume that closes at a price higher than the previous ...
RELATED FAQS
  1. Why is the Uptick Volume important for traders and analysts?

    Uptick volume is important to traders and analysts because it helps calculate net volume and spot lines of resistance. In ... Read Full Answer >>
  2. What is the Uptick Volume formula and how is it calculated?

    Uptick volume measures the volume of trades that occur when the price of an underlying asset is increasing. This measurement ... Read Full Answer >>
  3. What is a common strategy traders implement when using the Uptick Volume?

    Uptick volume is used to identify trends and momentum of a stock to the upside. It shows how much demand there is for a stock ... Read Full Answer >>
  4. What is a common strategy traders implement when using the Volatility Ratio?

    The volatility ratio is a tool that a trader can use to identify whether the price of a stock has been trading out of its ... Read Full Answer >>
  5. How does a swing trader use the stochastic oscillator?

    The stochastic oscillator is a momentum technical indicator used to indicate points of possible price reversals. Swing traders ... Read Full Answer >>
  6. How can I spot trading opportunities looking at year-to-date (YTD) performance?

    Trading opportunities on the long side can be spotted by looking at stocks with the worst year-to-date (YTD) performance, ... Read Full Answer >>
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